Join the Crypto-Trading Party Before the Cops Get Called
Disclaimer: I’m not a financial adviser. I don’t know your situation. I have a bachelor’s degree in film. This should speak volumes to my lack of expertise on anything and everything, including movies.
Statements from Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde last January suggest that restrictions on trading cryptocurrencies like Bitcoin are on the horizon.
Are they warranted? Probably. But I’m not here to judge how you use crypto. As Coinbase went public this week, Dogecoin exploded Friday morning, peaking at 48 cents before flattening out around 35. Keep in mind, it was a big deal this coin hit 5 cents back in January. Millionaires were made with every increased cent.
And while, yes, it’s foolish to think that just any crypto is going to blow up or that there are no risks involved, the volatility of the market can be used to your advantage. Since crypto isn’t treated like regular securities, you can trade the same currency as much as you want in a day and you won’t be restricted, fined or punished in any way (until you have to fill out your tax forms).
After the Dogecoin spike, I watched it bounce between 30 and 40 cents all day pondering how high the Shiba Inu lovers on Reddit could successfully meme the coin. But the limitless trades you could make were ripe for exploitation. All I could think was the amount someone with $1 million could make trading DOGE with a ~15–25% return every 5 minutes. And you could do this with any coin using as much money as you are willing to lose.
Are there risks? Absolutely. Is it legal? Perfectly.
Another reason to start trading is because (generally speaking) crypto is trending upwards. Each currency gets adopted at its own pace. But as they all fill in the blocks on their respective chains, each currency appreciates in value. The more they are mined, the bigger the market becomes. Bitcoin’s blockchain isn’t expected to be finished for over a century. While it would be irresponsible to say it would only go up in value, Bitcoin has proven time and time again that it’s worth the long-term investment. But what if you buy at the wrong time? Aren’t Cryptocurrencies super volatile?
Yes, the Crypto market definitely is its own proverbial rollercoaster, but as financial institutions adopt Bitcoin (and to a lesser extent Ethereum) the price swings shrink. I still wouldn’t call it predictable, but it’s still trending upwards. If I were qualified to give financial advice, which I am not, I would say join the party before hedge funds have too much to drink and ruin it for everyone. It’s still early in the night and the neighbors aren’t calling the cops yet.
But the most important reason to start trading crypto is, as they say, for the memes. As someone who paid close attention to /r/WallStreetBets in 2020 leading up to the pseudo-revolution that was the Gamestop fiasco, I don’t like them very much. Their “not very PC” vernacular aside, they celebrate losses and lead less experienced traders astray. That being said, they have the time, money and solidarity to produce the most elaborate (and compelling) shitposts and copypastas on reddit. Dogecoin Twitter and its subreddit have a more wholesome spirit. If/when DOGE hits $1, an entire community will be there with rocket GIFs and pupper pics.
Crypto might be subject to as many (or more) restrictions as normal stock in the near future. But whether you want to day trade or leave it alone for months at a time, the potential downsides are minimal. Unlike most companies on the stock exchange, Crypto actually is too big to fail.*
* =Again, I took out loans to study movies. Don’t go all-in on my word.
